SECURITIES AND EXCHANGE COMMISSION
                                      Washington, D.C.

             LITIGATION RELEASE NO.   15988   /  November 30, 1998

             SECURITIES AND EXCHANGE COMMISSION v. SHARP CAPITAL, INC.,
             ET AL.  Civil Action No. 3-98-CV2792-G

             SEC CHARGES INVESTMENT ADVISER WITH SECURITIES FRAUD

             On November 25,1998, a Dallas-area registered investment
             adviser and its president consented to a preliminary
             injunction, asset freeze and the appointment of a
             Special Master in a civil fraud action brought by the
             Commission.  The adviser and its president lost as much
             as $80 million of client funds in unauthorized, highly
             leveraged investments in speculative securities,
             including Russian debt instruments.

             The Commission's complaint names Sharp Capital, Inc.
             ("Sharp"), an investment adviser registered with the
             Commission, and its president, Mauricio Gutierrez
             ("Gutierrez") as defendants.  The Complaint also names
             Emerging Markets Capital Advisors, Ltd. ("EMCA"), a
             Bahamian  corporation, as a relief defendant.  The
             Commission's Complaint charges Sharp and Gutierrez with
             violating the antifraud provisions of the federal
             securities laws. In particular, the Complaint alleges
             the following:
 
                           Since April 1997, Sharp and Gutierrez  
                            raised $82 million from at least 130 
                            advisory clients in Mexico.
         
                           Sharp and Gutierrez promised to invest 
                            the funds of these clients only in 
                            conservative investments such as
                            Eurobonds, Euro CDs and money markets, 
                            and misled clients by advising that  
                            specific instruments issued by well-
                            known companies had been purchased for 
                            their accounts.  Sharp and Gutierrez  
                            also sent clients confirmations and
                            monthly portfolio statements on Sharp  
                            letterhead which falsely reflected the  
                            purchases and sales of these instruments,  
                            together with interest earned in the
                            account.
             
                           In reality, very little client money was 
                            so invested.  Instead, Sharp and Gutierrez  
                            pooled their funds in EMCA, an entity for 
                            which Sharp provided investment advisory
                            services, and used these funds to make highly 
                            leveraged purchases of securities through the 
                            use of repurchase agreements with various 
                            broker-dealers.
             
                           EMCA's portfolio was invested in volatile 
                            emerging markets, including Russia, Venezuela  
                            and Brazil. In August 1998, at least 75% of 
                            the fund was invested in Russian Ruble-denominated 
                            debt instruments, whose value plummeted when the 
                            Ruble collapsed in mid-August 1998. As a result, 
                            much of the money of Sharp's clients was
                            lost, and what remains is in illiquid investments.

                  The  Complaint  charges  that   Sharp   and   Gutierrez
             violated the antifraud provisions found in Section 17(a)  of
             the  Securities  Act  of  1933  (Securities Act) and Section
             10(b) of the Securities and Exchange  Act  of 1934, and Rule
             10b-5 thereunder, as well as Section 206 of  the  Investment
             Advisers  Act  of  1940,   based upon these same activities.
             The Complaint seeks a permanent injunction against Sharp and
             Gutierrez,  seeks  a  freeze  of   the   assets   of  ,  and
             disgorgement from, Sharp and EMCA.  The complaint also seeks
             an  accounting  by  Sharp,   civil penalties from Sharp  and
             Gutierrez and the appointment  of  a  Special Master to take
             possession of Sharp's assets and EMCA's portfolio.

                  The   Commission   would   like   to  acknowledge   the
             outstanding  assistance  of  the State Securities  Board  of
             Texas,  who  worked  closely  with  the  Commission  in  its
             investigation.  Their assistance  is  yet another example of
             the effective coordination by the State Securities Board and
             the Commission in their joint efforts to  police  securities
             fraud.